Gas Prices Near $3 as National Average Drops to Three-Year Low

The national average price for a gallon of gas is approaching the $3 threshold, falling three cents this week to $3.03—the lowest level in over three years. According to AAA, the last time gas prices dipped below $3 nationally was in May 2021. Meanwhile, the cost of public EV charging remains steady at 34 cents per kilowatt hour.

AAA spokesperson Andrew Gross notes that the national average could fall below $3 within days.

“The national average is tantalizingly close to falling below $3 a gallon,” Gross says. “But 32 states already have an average below or well below $3. Hockley County, Texas appears to have the lowest county average, at $2.30.”

As of today, the national average price for gas is seven cents lower than a month ago and 19 cents less than this time last year.

Supply and Demand Dynamics

Data from the Energy Information Administration (EIA) shows a slight increase in gasoline demand, which rose from 8.50 million barrels per day (b/d) to 8.73 million b/d last week. Total domestic gasoline stocks also grew, climbing from 212.2 million barrels to 214.6 million barrels. However, gasoline production declined slightly, averaging 9.5 million barrels per day.

On the crude oil front, West Texas Intermediate (WTI) dropped $1.40 on Wednesday, settling at $68.54 per barrel. U.S. crude inventories also fell by 5.1 million barrels, leaving total stocks at 423.4 million barrels, about 5% below the five-year average for this time of year.

Regional Price Variations

Gas prices continue to vary widely across the country, with Hawaii ($4.56) and California ($4.39) leading the list of the most expensive states. On the other end of the spectrum, Oklahoma ($2.52) and Mississippi ($2.62) boast the cheapest averages.

Most Expensive Gasoline Markets

• Hawaii: $4.56
• California: $4.39
• Washington: $3.99
• Nevada: $3.66
• Oregon: $3.53

Least Expensive Gasoline Markets

• Oklahoma: $2.52
• Mississippi: $2.62
• Texas: $2.63
• Arkansas: $2.63
• Kansas: $2.67

Public Charging Costs

For electric vehicle owners, the cost of charging varies significantly by state. Kansas leads with the cheapest average for public charging at 21 cents per kilowatt hour, while Hawaii remains the most expensive at 56 cents.

Most Expensive EV Charging Markets

• Hawaii: 56 cents
• Montana: 45 cents
• West Virginia: 44 cents
• New Hampshire: 42 cents
• Idaho: 42 cents

Least Expensive EV Charging Markets

• Kansas: 21 cents
• Missouri: 24 cents
• Nebraska: 25 cents
• Delaware: 26 cents
• Texas: 27 cents

Looking Ahead

AAA predicts that gas prices will continue their slow decline, potentially dipping below the $3 mark nationwide in the coming days. With 32 states already below this threshold, the trend could provide some economic relief as the holiday season unfolds. However, fluctuations in crude oil prices and regional supply dynamics may impact the pace of the decline.

Image: AAA